Economic Trends He’s Jammine till the jam is through
A glimmer of good news, particularly if you like the idea of trickle-down economics, and who doesn’t? The black middle class – defined as households earning more than R5,000 and being, well, black, is still growing, at the rate of three or four hundred thousand households a year, and this is being noticed not in overall GDP growth per se but in categories like vehicle sales, which are growing at the surprising rate of 19.5% year-on-year, at a time when most manufacturing categories can hope for 5% at best. Another interesting number is that black income (in its totality) has surpassed that of the white population for the first time in history, which is rather more of an indictment than otherwise, but which is nevertheless progress. Black income has grown about 34.5% in the past five years, and spending by black households has increased 541% from 2002 to 2011. All of this according to Azar Jammine, the most interestingly named economist this side of the Bosphorus.
Comment: Income inequality aside, this is a massive social shift in a short period of time. Well done us.